Question

Travis is a 30% owner of 3 rental houses. He spends 625 hours a year managing the properties. In addition, he owns a 20% interest in a real estate business to which he devotes 1,800 hours a year. The rental units generate a total loss of $22,000, and Travis' adjusted gross income in the current year, before considering the rental properties, is $120,000. How much of the loss can Travis deduct?

	a.	$- 0 -
	b.	$4,500
	c.	$6,600
	d.	$15,000
	e.	$22,000

According to the test bank 2016 the answer is (c) Please explain. Thank you

Answer 1

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